13 Best Internet of Things (IoT) Stocks to Buy Now

3. QUALCOMM Incorporated (NASDAQ:QCOM)

Number of Hedge Fund Holders: 63

Market Capitalization: $152.45 billion

On February 6, Baird lowered its price target on QUALCOMM Incorporated (NASDAQ:QCOM) to $177 from $200 while maintaining an Outperform rating, updating its model following recent results and signaling that fiscal 2026 is shaping up as a transitional year across certain end markets.

QUALCOMM Incorporated (NASDAQ:QCOM) reported fiscal first-quarter revenue of $12.3 billion and non-GAAP EPS of $3.50, both company records and at the high end of guidance. The performance highlights robust execution across the portfolio even as the broader smartphone market remains choppy. Performance reflected strong execution across its diversified portfolio despite ongoing volatility in the broader smartphone market. IoT revenue increased 9% year over year to $1.7 billion, supported by growth in industrial and consumer networking products, with management guiding to low-teens percentage growth in the second quarter.

The company returned $3.6 billion to shareholders during the quarter, including $2.6 billion in share repurchases and $949 million in dividends, underscoring confidence in long-term cash generation. Record profitability, diversified revenue streams, and disciplined capital allocation reinforce QUALCOMM Incorporated (NASDAQ:QCOM)’s ability to navigate cyclical variability while investing in high-growth areas such as automotive and edge AI.

QUALCOMM Incorporated (NASDAQ:QCOM) is a leading American semiconductor and wireless technology company that designs, develops, and licenses foundational technologies for the global communications industry. The company develops processors and foundational communications technologies, serving mobile, automotive, IoT, and artificial intelligence markets globally.